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Can depreciation recapture put you into a higher tax bracket. Say I have 65k in w2 income and sell a rental with 50k in depreciation. Does that make my income 115k.

 
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Can depreciation recapture put you into a higher tax bracket. Say I have 65k in w2 income and sell a rental with 50k in depreciation. Does that make my income 115k.

On your (very) limited set of facts, your AGI would be $115k with $65k in W-2 income and $50k in unrecaptured Section 1250 gain.

 

However, although it is possible for unrecaptured Section 1250 gain to put you in a higher bracket, the maximum tax on that gain is 25% so the impact is limited at higher levels of income (i.e., a taxpayer in the 35% tax bracket would still only be taxed at a 25% rate on unrecaptured Section 1250 gain).

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